A BILL to amend the Code of Virginia by adding a section numbered 45.2-1706.2, relating to policy of the Commonwealth; data centers.
HB591 establishes a statement of policy for the Commonwealth regarding data centers. It directs Virginia to encourage the responsible operation of data centers while also supporting electric grid reliability, affordability, and the deployment of renewable energy resources. The bill frames data centers as important economic and infrastructure users that should be coordinated with state agencies and regional grid operators.
The bill lays out several policy goals: improving coordination on energy use and interconnection timelines, encouraging demand response and energy storage, promoting flexible electricity consumption that can align with renewable generation, requiring large-scale data centers to contribute fairly to infrastructure costs, and expanding reporting on energy, water, and sustainability measures. It also includes a security component, calling for cybersecurity, physical security, and supply chain protections to guard against foreign adversary access or compromise.
HB591 would add a new section to the Code of Virginia, § 45.2-1706.2, creating a statewide policy framework for data centers. While the bill is largely declaratory and policy-oriented rather than a direct regulatory mandate, it signals legislative direction for agencies, utilities, and grid operators to manage data center growth in ways that protect ratepayers, support renewable integration, and improve transparency around resource use. It could affect large data center operators, electric utilities, state agencies, and regional grid planners by shaping future reporting, infrastructure cost allocation, and energy coordination expectations.
The available vote history suggests broad support in committee, as the bill was reported with a 14-0 vote before being continued to the next session in Finance and Appropriations. The text itself reflects a generally pro-development but management-focused approach: it supports data center growth, but only if it is paired with grid reliability, cost fairness, sustainability, and security safeguards. No committee transcript was provided, so the record shows support without detailed public debate in the materials available.
The main points of potential contention are the requirements that large data centers pay a fair share of infrastructure investments and the reporting obligations on energy and water usage, which could be viewed by industry as added costs or compliance burdens. Another likely area of debate is how strongly the Commonwealth should push data centers to participate in demand response and flexible load management, since those expectations may affect operational flexibility. Supporters are likely to emphasize protecting residential and small business ratepayers, while opponents may argue the bill could increase regulatory uncertainty or discourage investment.